Taking advantage of the falling US dollar

With SGD hitting an all-time high against the USD, I was very much interested to find out how I could turn this situation to my advantage.

After mulling over this for some time, I came up with the following list:

• Changing some SGD for USD at the moneychanger
  I was at Suntec over the weekend and saw a long queue at the moneychanger opposite Watsons, guess some people like to keep physical cash or they are going to the US for a well-timed holiday.
• Changing some SGD for USD and keeping it in a bank account
  I was looking at some foreign currency accounts and concluded that unless you have use of USD in your daily work or otherwise, there was not much point in opening such an account.
• Buying into USD-denominated shares on the Singapore stock exchange
  STI component stocks denominated in USD include Jardine Matheson Holdings and Jardine Strategic Holdings. However, valuations appear to me to be on the high side right now. Besides, I was also none too familiar with these two counters.
• Buying the upcoming American Depositary Receipts (ADRs) quoted on the Singapore stock exchange
  By chance, I came across this piece of news, saying that SGX will quote ADRs of 19 major Asian companies from 22 October 2010. Coincidentally, that was next week.

From the list, we can see some of the big companies in China right now. Personally, I am most interested in Baidu. Firstly, it has the highest 6-month daily turnover in the list, reflecting a high level of liquidity. Secondly, with the exit of Google from China, this opens up an opportunity for other search providers such as Baidu. Thirdly, the China growth story is arguably the current flavour of the times, and Baidu is well-placed to ride on this.

For now, I am content to adopt a wait-and-see attitude first but definitely, I am looking to get in on a slice of the action. Good luck to all!

Portfolio Review 3Q10

Currently holding on to 6 counters (see Portfolio Review 1Q10 for 1-5 and Portfolio Review 2Q10 for 6):

1. FrasersCT
2. Suntec
3. PLife
4. Starhill
5. Saizen warrant
6. Cache

Next portfolio review due after 31 December.

Note to self: NAV includes realised P/L, fees and dividends. Performance vs. STI measures only paper value.

Stock Portfolio Update Aug/Sep 2010

Continuing on from Stock Portfolio Update May/June 2010,

• 27 Aug, 9 Sep 2010
  Collected dividends from FCT, Suntec, Starhill and PLife
  

REITs Performance I

Due to the uncertainty surrounding the strength of the global economic recovery, the general consensus seems to be that the STI is pretty much range bound. In such an environment, stock picking becomes even more crucial in sieving out the likely outperformers.

REITs are no exception to this.

The table shows the month end prices for selected REITs with the STI as the last row for reference. To illustrate the point more clearly, a graphical form in terms of percentages is presented next.

I observed that amongst these, there were three that consistently outperformed the STI:

1. PLife
2. CDLHT
3. MLT
   

In a previous post, I had already highlighted CDLHT's potential.

MLT's strong performance could be attributed to its string of recent yield-accretive acquisitions. PLife is not so clear to me though. On 27th of August, it jumped 9c from 1.44 to 1.53 on volume of 1.262m and on 31st of August, it jumped 7c from 1.51 to 1.58 on volume of 3.48m, both days without any announcements.

Going forward, I would favour a sectorial-cum-sponsor approach in the S-REITs market.

The hospitality sector is clearly benefiting from the IR tourism effect, which could spill over into the retail sector. Industrial rents seem stable enough and office rents appear to be bottoming. As for healthcare, its rental has all along been pegged to CPI and can be seen as a defensive play.

Strong sponsors would include Capitaland, Ascendas, CDL, Keppel Land, Mapletree, F & N, Parkway, in essence all those which I deemed fit to include in the table and graph.

One last thing I would keep my eye on is the Mapletree Industrial Trust IPO planned for later this year. I would definitely subscribe for it if and when it does materialise =)

AUD / NZD Update July August 2010

Status quo on the AUD front, whilst NZD rate continues to rise (see below).

Reserve Bank of Australia (RBA) media release statement on monetary policy decision found below:

At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.
... (statement continues in a similar vein to previous releases)

Reserve Bank of New Zealand (RBNZ) news release on the Official Cash Rate (OCR) found below:

The Reserve Bank today increased the Official Cash Rate (OCR) by 25 basis points to 3.0 percent.

Reserve Bank Governor Alan Bollard said: “While the outlook for economic growth has softened somewhat, it is still appropriate to continue to reduce the extraordinary level of support implemented during the 2008/09 recession.

“The world economy continues its fragile recovery. Trading partner growth has turned out stronger than we predicted, however, future prospects for growth have deteriorated. While still at high levels, our commodity prices have moderated.

“In New Zealand, domestic demand is subdued. Households are cautious, with retail spending growing only modestly, housing turnover in decline and household credit growth weak. While this caution has been evident for some time, the recent slowing in net immigration will act to further dampen consumer spending. Business investment remains very low, with corporate lending continuing to be subdued.

“The New Zealand dollar has appreciated in recent weeks. This appreciation is inconsistent with the softening in New Zealand’s economic outlook and moderation in our export commodity prices.

“Overall, we continue to predict respectable near-term GDP growth, with manufacturing confidence remaining elevated and forestry exports continuing to expand. An eventual recovery in business investment will assist growth over the medium term.

“Annual CPI inflation has been near 2 percent for the past five quarters. As the economy grows, inflationary pressures are expected to pick up.

“Given this, some further removal of monetary policy stimulus is appropriate at this stage. Even after today’s move, the level of the OCR is still very supportive of economic activity. The pace and extent of further OCR increases is likely to be more moderate than was projected in the June Statement. Our policy assessment will be continually reviewed in light of economic and financial market developments.

“The coming increase in the rate of GST and other government-related price changes are likely to temporarily push annual CPI inflation above 3 percent. The Bank does not expect this price spike to have a lasting impact on inflation. However, the price and wage setting behaviour of firms and households will be monitored for evidence of any increase in inflation expectations.”

Discount to NAV / Analyst TP

In an earlier post on REITs, one screening criterion I mentioned was that of discount to NAV, akin to the notion of paying less than what something is actually worth. Recently, while reading through some analyst reports, another idea struck me, that of discount to analyst target price.

From what I can gather, most if not all of these analyst houses use some sort of discounted cash flow (DCF) method to arrive at their forward target prices (TP). Simply put, NAV is like the current valuation of a house (less the purchase loan), and a DCF TP is like what the house is worth based on the future rental income (forecasted) that it can fetch.

Below is a summary of the target prices gathered from 9 institutions for S-REITs.
Those highlighted in green are those with current discounts of >10% to both NAV and TP.
Those highlighted in red are those with current discount of >10% to NAV.
Those highlighted in yellow are those with current discount of >10% to TP.

Of the highlighted REITs, one in particular has caught my eye: CDLHT. It does not have the highest discount to the average TP at 14%, but shifting our attention to the other column, we see that it does have the highest premium to NAV of not just the highlighted selections, but of all the S-REITs, at 28%.

Evidently, the analysts must be seeing something that the market perhaps does not. Upon closer inspection of the analyst reports on CDLHT, I have picked out two main factors for the apparent optimism.

1. Strong balance sheet, especially after the recent placement exercise, points to probable acquisitions which would act as price catalysts
2. Singapore tourism boom with the improving global economy and further boosted by the opening of the two IRs

In my opinion, these seem sufficiently justified.

Normally, people pick stocks either as growth counters (for capital appreciation) or as defensive counters (for dividends). However, where possible, I would like to have a bit of both. Previously, I would choose a REIT primarily for its dividend yield, and then for its price appreciation as a secondary objective. Barring a double dip recession, which looks increasingly unlikely to me, the STI might just fluctuate within a range. In such a case, buying a REIT such as CDLHT would be first for price appreciation since the yield might not reach interesting enough levels for me when the market goes down. And if I manage to catch the CD period then even better, although that would only be at year end since CDLHT has a semi-annual policy and the first half dividends had been brought forward due to the placement exercise.

In the meantime, my rough guideline for entry into CDLHT would be the placement price of $1.71 plus minus, to be refined further with TA. Cheers!

AUD Update July 2010

Reserve Bank of Australia (RBA) media release statement on monetary policy decision found below:

At its meeting today, the Board decided to leave the cash rate unchanged at 4.5 per cent.

The global economy has continued to expand over recent months, consistent with a trend pace of growth. The expansion remains uneven, with the major advanced countries recording only modest growth overall, but growth in Asia and Latin America, to date, very strong. There are indications that growth in China is now starting to moderate to a more sustainable rate. In Europe, while output in some key countries has been improving recently, prospects for next year are more uncertain given the budgetary constraints governments face and the pressure on euro area banks. US growth has looked stronger in the first half of 2010 but the pace of labour market improvement is slow.

Caution in financial markets has been evident in the past couple of months, driven principally by concerns about European sovereigns and banks but also by some uncertainty about the pace of future global growth. Financial prices have been more volatile and equity prices and government bond yields in major countries have declined. Some tightness in funding markets is evident, though not on the scale seen in late 2008. Commodity prices are off their peaks but those most important for Australia remain at very high levels, and the terms of trade are approaching their peak of two years ago.

With the high level of the terms of trade expected to add to incomes and demand, output growth in Australia over the year ahead is likely to be about trend, even though the effects of earlier expansionary policy measures will be diminishing. Consumption spending is recording a modest increase at present, with households displaying a degree of caution, but most indicators suggest business investment will increase over the coming year. Business credit appears to have stabilised, though credit conditions for some sectors remain difficult. Credit outstanding for housing has continued to expand at a solid pace, but dwelling prices are rising more slowly than earlier in the year.

The labour market has continued to firm gradually, and after the significant decline last year, growth in wages has picked up a little, as had been expected. Underlying inflation appears likely to be in the upper half of the target zone over the next year. The rate of CPI increase is likely to be a little above 3 per cent in the near term, due to the effects of increases in tobacco taxes announced earlier in the year and significant increases in prices for utilities.

The current setting of monetary policy is resulting in interest rates to borrowers around their average levels of the past decade. Pending further information about international and local conditions for demand and prices, the Board views this setting of monetary policy as appropriate.

Germany lost!!

:(( So Yogi won the bet.. Screw him!

Round of 16: England out (Ber)
Quarter finals: Argentina out (mInG)
Semi Finals: Germany out (KKS)
Finals: Holland out? (Yogi)

Can this pattern hold true? What will the prophet Paul predict next? Find out in the next episode of World cup Paul prediction..

Therefore, Spain is the winner. *rushes to Sgpools to bet..

KKS

Not Everyday is a Sunday..

But.. Today is a Sunday... I guess this is what they mean by 情场失意，赌场得意...

KKS

Portfolio Review 2Q10

One transaction completed:

1. GuocoLeisure
   
   • Buy
     Possible privatization by Quek Leng Chan
     Hospitality strength in London and oil royalties from Australia Bass Strait
     Proxy to hospitality sector
     Possible 2012 London Olympics catalyst
   • Sell
     Rumours proved unfounded and privatization did not materialise
     UK elections overhang -> possibility of hung parliament -> political uncertainty
     PIIGS (Portugal Ireland Italy Greece Spain) debt woes in Eurozone
   • Lessons learnt
     There's no smoke without fire, except when a lot of people smoke together
     

Currently holding on to 6 counters (see Portfolio Review 1Q10 for nos. 1 - 5):

1. FrasersCT
2. Suntec
3. PLife
4. Starhill
5. Saizen warrant
6. Cache
   
   • Buy
     First pure logistics REIT listing in two-and-a-half years
     Luck with IPO balloting for public (see Third Time Lucky entry)
     Logistics strength in ramp-up warehouses located in established logistics clusters, near air and sea transportation ports -> barrier to competition

Next portfolio review due after 30 September.

Note to self: NAV includes realised P/L, fees and dividends. Performance vs. STI measures only paper value.

Can you put a price on love?

Yes you can!

Money in a guy account before you consider accepting him as your life partner?

10K - 20K	[ 22 ]	[6.96%]
20K - 30K	[ 65 ]	[20.57%]
50K - 80K	[ 95 ]	[30.06%]
100K -120K	[ 31 ]	[9.81%]
150K - 200K	[ 41 ]	[12.97%]
Nothing matters	[ 62 ]	[19.62%]

Poll Taken from some local female forum..

Hmmm Interesting! I dun have 50K to 80K leh.. how? :( So moody..

KKS

NZD Update June 2010

Finally, NZD rates up...

WELLINGTON - NEW Zealand's central bank lifted the official interest rate by a quarter percentage point Thursday from a record low of 2.5 per cent, the first change since April last year.

Reserve Bank of New Zealand Governor Alan Bollard said the official cash rate was being raised to 2.75 per cent because the economy was entering its second year of recovery and inflationary pressures were expected to be contained.

'Given this outlook and as previously signalled, we have decided to begin removing some of the monetary policy stimulus that is currently in place,' Mr Bollard said.

'The further removal of stimulus will be reviewed in light of economic and financial market developments.'

New Zealand slumped into recession at the start of 2008, emerging only in the second quarter of last year with economic growth picking up to 0.8 per cent in the three months to December compared with the previous quarter. -- AFP

Stock Portfolio Update May/June 2010

Continuing on from the Personal Financial Journey entry,

• 15 Mar 2010
  Received advanced distribution from FCT due to private share placement
• 21, 27 Jan - 5 Apr 2010
  Bought GuocoLeisure at $0.73, $0.63 (average $0.68) and sold at $0.70
• 27 May, 9 June 2010
  Collected dividends from FCT, Suntec, Starhill and PLife

Reminder to self: second portfolio review due after 30 June.

AUD Update June 2010

Looks like AUD rates will be staying at current levels for the moment...

SYDNEY - AUSTRALIA paused an aggressive series of interest rate rises on Tuesday, citing turmoil on global markets over Europe's debt woes which have raised the spectre of a 'double dip' recession.

The Reserve Bank of Australia opted to leave rates on hold at 4.50 per cent, deciding against a fourth straight quarter-point hike and the seventh since October.

'Interest rates to borrowers are around their average levels of the past decade, which is a significant adjustment from the very expansionary settings reached a year ago,' said Reserve Bank of Australia governor Glenn Stevens.

'Taking all the available information into account, the Board views this setting of monetary policy as appropriate for the near term,' he added. Australia's stock market and national currency have fallen sharply over the past month as investors were rattled by debt problems in Greece, Spain and elsewhere which have prompted emergency action by European leaders.

The economy has also been overshadowed by a row over a new tax on the key resources sector, which has helped drive Australia's strong recovery from the financial crisis.

The rates decision followed mixed data on Tuesday, with April retail sales up a better-than-expected 0.6 per cent from a month earlier but housing building approvals down 14.8 per cent. -- AFP

How much do you need to have to get married?

Supposing you want to get a decent sized ring , 0.5 carat. Nevermind the clarity , colour or setting.. It'll cost you around 4.5k. That's just the diamond ring, you need to get wedding bands too, which will easily cost up to 2k.

So we've got that settled. You're a face-loving Chinese descendant who needs to host a grand wedding. You need to host a wedding dinner/Banquet for all your family members and friends. Suppose the going rate for 1 table is at least 1k, you'll host at least 30 tables depending on how sociable you are. That's 30k for 30 tables + booking fees for dining hall which is another say 10k. You'll need some more money for the misc stuff, wedding gown, suits, photo albums, etc etc. That'll cost about 10k
All in all it'll cos 50k

Then you'll need to go on a holiday. Suppose you two go to the NATAS fair and found a really good deal for 2 to Hokkaido for 10k.

Summing it up, 50k +10k + 6.5k = 66.5k

Supposing your girlfriend is really picky and wants another setting at you ROM, that'll cost 3.5k? to round it up, So in total you'll need at least 70k to get comfortably married.

On the up side, you may recover up to 20k-30k from Angbaos depending on how affluent your friends and immediate family are.

I'm pretty sure every lovebirds would want a private nest they call home, so you'll still have to pay 20% upfront for your HDB if you're buying one. Let's take the average of 250k *20% =50k. Damn you still need to top up 30k and all your Angbaos will go to paying for your new flat.
Plus, 40% max of your earnings will go into your new flat as illustrated in previous post, which will make your life so damn miserable.

Sigh, almost makes you want to have a void deck wedding doesn't it?

~KKS

Affordable HDB

Recently, I've been thinking, does it make sense to get a new HDB flat?

Mr Mah said on 10 Apr 2010 that housing was still affordable. Is it really?

Let's just say for argument's sake that you ballot for new HDB BTO project in Choa Chu Kang and you got it on the first try. Woopee!

For new 4-rm units, pricing ranges from $226K to $278K. Let us take the middle of $252K as representative.

252K, That's not so bad right, so you wanna use your CPF to pay. Let's just say for argument's sake that you and your gf have just nice 52K in your CPF OA + 1st time grant etc. So your CPF is basically wiped out.
To pay for the 200K balance, you have to get a loan, let's say you apply for HDB housing loan..

Let's just say you and your gf have a gross monthly income of $5500, of course, that won't be stagnant as you get more experienced. And you decide to pay the whole thing in 10years because, let's face it, 2.6% loan interest is too high, and the more you decide to delay payment the more money you lose.(Max 30 years)

$5500 * 40% = $2200 repayment per month @ 2.6% interest.
HDB max ceiling for housing repayment is 40% for income. so your CPF OA per month is wiped out for 10 years
So if you do a little calculation, you can repay the HDB in around 9 years.
$2200*9years*12mths=$237600. That's over your loan of 200K , including interest
Let's just say that amount is the amount you pay for 9 years with interest.

So let's sum it up, your
1)OA is wiped out for 9 years
2)You have $3300 left for household expenses, clothing , food,personal insurance, housing insurance, bills.
Let's say you spend $2000 total on all the stuff above.
You have $1000 left in your savings for holiday and extraordinary expenses like eating out on special occasions, personal entertainment.

So what happens when you want to have a baby? You can't possible be waiting for when you're 30+ to have a baby. How are you able to pay for all that?

And of course, all that is dependent on you , having a reasonable girlfriend who doesn't demand that you pay for all the expenses.

Yes, HDB is affordable, but the cost of living here is not. We do live a sad, debted life. No wonder we always complain "Money not enough"



KKS out.

REITs Screening Criteria I

It is no secret that I am a fan of REITs. For me, the great thing about this class of assets is that I get to enjoy regular and predictable distributions in most cases, barring any extraordinary circumstances. However, what the recent credit crisis has done is it has exposed the weaker REITs for their ability to secure financing and ultimately, the fallabilities behind the management of their debt profiles.

As a retail investor, I have thus learned that I have to screen my buys stringently to protect my own interests. Below is my newbie attempt to establish a set of criteria to determine which REITs to buy for stability and for value-for-money:

Stability

1. Low gearing, i.e. < 35% (also the limit for REITs without a credit rating)
2. Presence of a sponsor, preferably a strong one, eg. Capitaland, F&N, etc
   
3. Portfolio mainly in Singapore, as I will have a local knowledge of the industry in that case

Value-for-money

1. Discount to NAV, i.e. paying less for more
2. High yield, preferably > 8% p.a.
3. Quarterly distributions (as opposed to semi-annually), this is just a personal preference to improve my own cash flow

After Saizen had set the precedent of suspending its distributions to conserve cash for paying off debts, I typically ascribe the most importance to the gearing criterion. Having a sponsor can be argued both ways, it can bail the REIT out in times of trouble, but it can also dump its own rubbish into the REIT. Reading about the efforts of F&N with regards to FCOT which it took over, I choose to believe the former rather than the latter. Despite the general penchant that Singaporeans have of complaining about their own country, I actually think Singapore is a stable country to do business in and hence have no issues with REITs having the majority of their portfolios here. Discount and yield are somewhat related since they are based on the share price, here TA is extremely helpful in determining good entry levels.

When I decide to enter into a counter, I settle for nothing less than 5 ticks. Of my holdings, 4 out of 5, with the exception of FCT, still pass my screening at current levels. Additionally, AIMSAMP after their recapitalisation exercise and the two Indo-based REITs, First and LMIR, fulfill the majority of my criteria and are on my watchlist.

As always, I am constantly seeking to refine and add on to my screening criteria and appreciate any inputs from friends and well-wishers, cheers!

Yield

As stock markets head towards a correction this May, for me this represents an opportunity to accumulate. Principally for me, I am vested in shares mainly for the dividends as an additional stream of 'passive' income for me. Once in a while though, my fingers get itchy and I attempt to do a spot of trading, but so far, have not been very successful at it =P

It has always been a dream of mine to be a 包租公. For the more ang moh pai people, it means to own properties and collect rental. Since I have just started working, this is of course not possible. So, when you have peanuts, then you play with peanuts. REITs represent a chance for me to own perhaps a single tile of huge properties like malls and hospitals and warehouses and enjoy the rental income from them.

With regards to my current portfolio, I was fortunate enough to begin my buying at a reasonable level and hence, have built up a certain margin before I begin worrying about losing my capital.

At the moment, my collection of REITs are yielding 8.2% per annum. Actually, my aim is for 8% and anything above that is a bonus. To put things into perspective, suppose you wish to generate an annual cashflow of $50k from stock dividends, you would need to invest $625k at 8% yield. This has taught me one thing: always try to buy at reasonable or even better, underpriced, levels so as to benefit from better yields (capital growth) and limited downside (capital protection).

Thus, my strategy for this correction is to keep my eye open for sustainable 8% yield stocks and continue to add to my portfolio. Wish me luck!

Hijack!!

So Micheal Ballack msged me the other day, he said Germany is going to win the world cup. That was way before FA cup when he got injured by Boateng. Now the German Captain is out of the world cup. Sadness. I'm sure Podolski or Klose will score some goals on his behalf..

The yongkiat is being ridiculous. Everytime I mention about Micheal ballack msging me he shuts me out. He's ignoring the fact that Germany will win the world cup. It's in the maths. 1954 -> 1974, 1990->2010.
20 years apart. It's all fated. Nothing can stop them. The world is coming together for their victory!

Check out the groups..

1	Australia	0	0	0	0	0	0	0	0
2	Germany	0	0	0	0	0	0	0	0
3	Ghana	0	0	0	0	0	0	0	0
4	Serbia	0	0	0	0	0	0	0

oh come on.. Ghana ? Australia? Serbia? pffftttt cya in world cup 2010...

and yes, I got an iPhone, finally succumb to the temptation.. now BKMY left Kiat without an iPhone.. When are you gonna get one?

KKS out.

Aviva SAF Insurance I

Recently, Aviva sent me a letter offering me an "exclusive offer to automatically upgrade your (my) group term life insurance cover to $200,000". The key points of the letter were:

1. Revision of maximum coverage to $600,000 in October 2009
2. Automatic upgrade of insurance coverage to $200,000 costing $0.85 daily (monthly premium $25.60) unless the insured person opts out

Upon reading the letter, I had an issue with (2) straightaway. It reminded me of the "innocent unless proven guilty" versus "guilty unless proven innocent" conundrum. In this case, Aviva was adopting the "Yes you want it unless you say otherwise" approach. I do not think this should be the way. For me, where insurance is concerned, there are two conflicting stands:

1. The level of coverage I would like to have
2. The level of coverage I can afford

Who doesn't want to be covered for a million bucks? But would you be able to pay the premium every month?

Subsequently though, Aviva realised its customer relations folly and sent me another letter. This time, it was "Yes you want it if you say so, otherwise status quo", which is of course much more palatable to the customer. In fact, Aviva was fairly quick to act upon its initial boo-boo. The first letter was dated 30 March and the second one 12 April.

I first signed up for this policy back when I was a blur-like-sotong NSF. It was only when I graduated and entered working life that I started to review all my existing insurance policies and recalled that I have been paying for this all this while. Initially, my monthly premium was $16 for a coverage of $100,000. Then, in a letter dated 28 April 2008, Aviva offered existing customers an automatic upgrade (similar to the one now):


This brings me to my current policy. Upon receiving the recent letter from Aviva, I did a brief comparison:


The third column is the premium per month per '000 coverage and shall serve as the basis of my comparison. To my surprise, the insurance component of my Manulife ILP turned out to be the cheapest in this respect, followed by the CPF DPS, and finally by the Aviva SAF insurance.

However, I will be the first to concede that this is not an entirely fair comparison study.

Firstly, insurers have to make money from somewhere, and for an ILP, the insurer's profits do not come from the insurance component but from the investment portion in the form of fees and the penalties incurred during the first few years.

Secondly, to compare amongst these various insurance policies that I have, is a bit like comparing apples to oranges. For instance, the Aviva SAF insurance has amongst other benefits, accident coverage and hospital cash whereas the CPF DPS is solely for death and total and permanent disability (TPD), which the Aviva SAF insurance also covers. A fairer comparison would entail comparing between policies which have the exact same terms and benefits, such as between term policies. The trouble is, I find that policies nowadays tend to combine benefits across various categories such that it is harder to classify them solely as just one certain type of insurance.

Nevertheless, despite the seemingly unfavourable results of the comparison, I have decided to go for the upgrade due to a few reasons:

1. To increase my overall coverage
2. Aviva SAF insurance allows spouse and children to enjoy the same coverage under one policy
   
3. Every year, I receive a partial cash rebate which helps to lessen the actual cost of the insurance
4. This offer includes free first one month premium

For more details on Aviva SAF Insurance and CPF DPS:
http://www.aviva-singapore.com.sg/life-and-health/for-individuals/saf-insurance-for-nsmen.html
http://ask-us.cpf.gov.sg/explorefaq.asp?category=23023


Disclaimer: The writer is covered under GE DPS, Aviva SAF Insurance and Manulink Flexi ILP mentioned in the post. This is not a solicitation to purchase insurance. Premiums quoted are for males who are non-smokers, aged 35 and under.